CARBO Ceramics Inc. (NYSE:CRR) Q1 2018 Earnings Conference Call - Preliminary Transcript
Apr 26, 2018 • 11:30 am ET
Hello, and welcome to today's CARBO Ceramics, Inc. First Quarter 2018 Earnings Conference Call. After today's presentation, there will be a question-and-answer session. (Operator Instructions). Please be advised this call is being recorded today, April 26, 2018, and your participation implies consent to our recording this call. If you do not agree to these terms, simply disconnect. Some of our comments today may include forward-looking statements, reflecting the company's view about future prospects, revenues, expenses or profits. These matters involve risks and uncertainties that could cause actual results to differ materially from our forward-looking statements.
These statements reflect the company's beliefs based on current conditions that are subject to certain risks and uncertainties that are detailed in the company's press release and public filings. Our comments today also include non-GAAP financial measures. These non-GAAP measures, including EBITDA and adjusted EBITDA, are not a substitute for GAAP measures and may not be comparable to similar measures of other companies. A reconciliation of net loss to EBITDA and adjusted EBITDA as discussed on this call is presented in the company's earnings release, which is available on its website.
Your host for today's call is Mr. Gary Kolstad, President and Chief Executive Officer of CARBO Ceramics, Inc. Mr. Kolstad, please begin your call.
Gary A. Kolstad
Thank you and welcome to everyone to our first quarter 2018 earnings call. I'm excited to tell you today about our solid progress on our transformation strategy to diversify our revenue streams and return the company to profitability. Our execution of that strategy continues to be on track. We were pleased that the revenue for the first quarter of 2018 was slightly ahead of our plan and increased 42% year-on-year, driven by strong growth in our oilfield and industrial business sectors. The growing top-line revenue contributed to a strong adjusted EBITDA incremental margin of 42% year-on-year.
One of the key drivers for this growth in revenue and profitability is our focus on expanding our suite of technologies into other industries to drive future revenue growth. Selling our technology products into other industries has two significant benefits. One, the revenue growth rates are high; and two, the profit margins are generally better. Now for a brief discussion on business sectors. In the oilfield, our oilfield technologies continue to exhibit the value they bring clients as sales volumes increased 20% year-on-year. The technology products including KRYPTOSPHERE, the GUARD family, CARBOAIR and CARBONRT continue to perform well in the market.
We are seeing more adoption of our technology products internationally. Base ceramic sales volumes increased 12% year-on-year, adjusted for the sale of our Russia ceramic business, and we had modest price increases. We, like others, had some disruptions in rail service during the quarter. However, we still achieved a large increase in frac sand sales volume due to client demand, as well as the capacity increases we realized from the fourth quarter of 2017 start-up of an additional sand operation in the Northeast. In addition to improving profitability and providing cash flow, frac sand